Finance Minister Jim Flaherty has today announced several rule changes for government-backed insured mortgages to come into effect on April 19, the proposed changes are as follows:
- All borrowers must meet the qualifications for a five-year fixed mortgage regardless of what they may be applying for.
- The amount that homeowners can withdraw on refinancing will be lowered from 95% to 90%, ensuring that more equity remains in the home.
- A minimum 20% down payment will be required on properties purchased with the intent that they be rented out rather than owner-occupied.
The 5% down payment for residential owner occupied homes remains unchanged. The 20% down payment will be required only for property purchased for investment purposes.